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Sachse council awards primary depository contract to American National Bank of Texas
Summary
The Sachse City Council unanimously approved awarding the city’s five-year primary depository services contract to American National Bank of Texas and authorized the city manager to finalize agreements, with staff citing local service and operational needs despite a modest projected income difference with an out-of-city Wells Fargo branch.
The Sachse City Council unanimously approved a resolution Feb. 3 awarding the city’s primary depository services contract to American National Bank of Texas and authorized the city manager or designee to negotiate and execute implementing agreements.
City finance director David Baldwin told the council that Texas Local Government Code Chapter 105, the Municipal Depository Act, requires competitive solicitation for primary depository services at least every five years and that the city’s existing American National Bank agreement runs through May 31, 2025. "Our current agreement with the American National Bank of Texas began 06/01/2020 and ends 05/31/2025," Baldwin said. He said the city solicited proposals, received offers from American National Bank of Texas and Wells Fargo Bank, and used Valley View Consulting to analyze cost and service differences.
Baldwin said staff considered 11 selection criteria, including services offered, references, cost, transition costs and interest paid. He said Wells Fargo’s net income projection exceeded American National Bank’s but staff recommended American National Bank because Wells Fargo’s closer full-service drive-up teller site was outside the city and the Sachse branch lacked full teller service. "Staff recommends awarding the primary depositary bank contract to American National Bank of Texas," Baldwin said.
Council members pressed staff on the $24,000 two-year income difference shown in paperwork. Baldwin explained that the difference related to interest and fee projections and practical deposit logistics tied to branch capabilities. Council member Milsap noted operational safety concerns tied to who makes deposits: "In the past, it's been made by finance staff or the police department. Current practice is the police department," Milsap said, adding that sending an officer out of city limits to make deposits could remove an emergency responder from duty.
Council member Lindsey moved to approve the resolution as presented; Bueller seconded. The council voted unanimously to approve the contract award and to authorize city staff to finalize agreements and implementation tasks.
The resolution directs the city manager or designee to negotiate and execute all agreements necessary to implement the contract; the council did not specify an effective date beyond the end of the current contract period. No amendments or conditions were added during the meeting. The council did not request a formal finance-only follow-up report prior to execution but did discuss operational details such as frequency of deposits (approximately three times per week) and the limitations of the Sachse Wells Fargo location for cash deposits.
The city will proceed with contract implementation and transition planning with the awarded bank.
